Every entrepreneur needs to know if there is actual demand for his or her product or service and there are grounds to believe that the demand will continue in the future. The more unique the product or service concept, the greater the challenge in predicting future sales levels (Gleeson 2005). Predicting the future has always engaged people. The modern concept of risk and the development of the probability theory in the 17th century reinforced the human tendency. The probability theory used past indicators in making educated guesses out of a particular set of events. Existing businesses use their trading history in making projections, while new businesses need to carefully study their markets in predicting likely sales revenues. Forecasting is important because it is the lifeblood of the business, needed to fund working capital to enable it to run effectively. Expenses and investments must be made against delays and uncertain sales levels. The business must make cash flow forecasts to assess the level of cash shortfall in the future, hence the necessity for good cash flow management. Furthermore, investments are based on the ability of the business to generate free cash flows as the investor's reward to the business for taking a risk. Predicted sales levels and the business' cash generation capability are the factors investors consider in making decisions. The forces, which affect or determine demand, include the proposition or fulfilling of an existing need, pricing, macro-environmental trends, competition, seasonal characteristics, substitutes and the market. The aim of sales forecasting is to arrive at widely credible revenue figures. It is not an exact science but a combination of fact-based analysis and subjective judgment. The endeavor helps enhance the entrepreneur's awareness of some key drivers of revenue growth in his or her business, produce a plausible business plan and prepare him or her in answering a poten...